Question
4. A $1,000 face value bond has a 7 percent coupon and pays interest semiannually. The bond matures in 10 years and has a yield
4. A $1,000 face value bond has a 7 percent coupon and pays interest semiannually. The bond matures in 10 years and has a yield to maturity (YTM) of 5 percent. What is the duration of this bond? What if the YTM is 9 percent? What can you say about the connection between YTM and duration?
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Financial Management Principles And Applications
Authors: Dr. S. Kr. Paul, Prof. Chandrani Paul
1st Edition
1647251664, 9781647251666
